1. Work with a Trusted Expert
With so much information on the internet, you may wonder if you need professional assistance. Just as you hire experts in tax, legal and medical fields, you deserve the best guidance and expertise available when it comes to investing hundreds of thousands of dollars.
Your ten year old can find homes on the internet. The value is the local market expertise and guidance an agent can provide.
A good real estate agent is like a secure investment that can save you thousands of dollars. The best news is that the seller pays the buyer’s agents fees if the property is listed on the Multiple Listing Service.
2. Be a Loyal Client
In today’s low inventory market, agents find out about new listings before they are advertised on the Multiple Listing Service. And who do you think they contact with this knowledge, their exclusive clients or the ones who are talking to 15 different agents?
Here is another way to look at it. Let’s pretend for a moment that you are a listing agent and you have two parties interested in your listing. One is unrepresented and the other is represented by a buyer’s agent. Which would you rather work with? The party that will make you do twice the work for twice the liability? Or the party who is represented?
3. Have Your Financing Worked out Before You Look at Homes
If you don’t have all the cash necessary to buy a home, you will need to borrow the money. You need to have a quick conversation with a local lender before you start looking at homes to feel confident that the homes you are looking at are in the correct price range. What if you can afford more than you thought? What if you fall in love with a home and then learn you won’t qualify for financing to buy it? It just makes sense to get your finances in order first.
4. Write Realistic Offers
You have found a home you want to buy. The next step is to prepare and submit an offer. Be realistic. Make an offer you want the other party to consider. Currently in Park City, most homes sell for an average of 95% of list price.
An experienced agent will guide you to write a realistic offer. If the property is well priced, you may need to come in at or near asking price. If the property is overpriced, there will be a need for more negotiation.
5. Contingencies
Almost all offers are written with a “due diligence” contingency. Offers requiring financing include a financing and appraisal contingency. The purpose of these contingencies is not to look for ways to renegotiate the purchase price.
The purpose of the due diligence contingency is for the buyer to make an informed decision about the property they are buying and for the seller to have the opportunity to correct major defects. This includes issues that may arise during inspection or a review of the title report.
I have not heard of transactions falling through due to the appraisal contingency in the last several years.
6. Closing Strategies
The transaction isn’t over until the deed is transferred to your name.
A “closing” is where an escrow officer transfers title of the property title to you. Since many buyers of Park City property do not reside in Park City, many closings are done through the mail, usually via email or overnight service. Your closing can be in Park City or any other location that is convenient for you.
Skilled agents work behind the scenes with the title officer and lender handling your transaction. They will review the closing documents for accuracy before you see them and will ensure your transactions closes on time.
There is a lot more that goes into the purchase of a home than looking at photos on the internet and arranging a showing. When you are making an investment of several hundred thousand dollars, doesn’t it make sense to obtain the best advice? And remember, in most transactions, the seller pays for the buyer’s agent.